Hi all,got an email back from the company yesterday. it was...

Hi all,

got an email back from the company yesterday. it was obviously a generic response as it didn't answer the specifics of the questions I asked.

The text was in the form of a picture (as I said, generic response) instead of just plain text - so makes it impossible to just cut/paste the text here.

However FYI the points to note (paraphrased by me) are:

1. The sale to AOE is a 'Heads of Agreement' (HOA) only - i.e. no 'Definitive Agreement' (DA) => LNG still retain ownership currently.
2. LNG has requested AOE to advise whether they wish to execute DA subject to LNG admendments with regards to proposed Shell T/O. If HOA is terminated LNG will make alternative gas supply arrangments.
3. 2 trains have approval for FL. AOE had exclusivity to one train only. LNG has been in long going negotiations with other gas suppliers for 2nd train.
4. LNG intend on advising shareholders no later than Mon 15th as to status of FL "go-forward" plans.


My opinion (if any one cares..):

1. AOE probably prefer LNG/FL but of course will sell to Shell if the price is right (current offer too low IMO).
2. Shell will can FL project, but maybe (low prob) use the FL site (if they can get it) with their own gear.
3. LNG will quite likely find plenty of other potential gas suppliers if not AOE.
4. LNG were relying heavily on AOE for the capital to build FL and cannot possibly do it alone.
5. Some other big player may well come in and save FL and stump up the capital to build it, but they won't do it for free! LNG will be in a weak negotiating position.
6. I'm staying out until I'm more confident FL is gonna get built (and LNG have some decent royalities locked in).

Just my thoughts,

Good luck to all!